DEFINITION of 'Capital Employed'
1. The total amount of capital used for the acquisition of profits.
2. The value of all the assets employed in a business.
3. Fixed assets plus working capital.
4. Total assets less current liabilities.
INVESTOPEDIA EXPLAINS 'Capital Employed'
This is a term that is frequently used, but very difficult to define because there are so many contexts it can be used in. All definitions generally refer to the investment required for a business to function. By "employing capital" you are making an investment.
Also known as "funds employed".
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